Speaker 1: (00:02)
Bill, Can I help you?
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Speaker 1: Wait, who? Who are you?
I’m your host. Sam Taggart, creator of the D2D experts in D2Dcon. Is there a place we can sit down?
We’ll come on him.
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Speaker 2: (00:48)
Hey Everybody. This is Sam Taggart, your host with the D2D podcast. And I’m here with Zach Bassett, who is a tax professional, not only just normal tax professional accountant, but he is literally specialized in door to door tax accounting. I mean literally what percent of your clients or door to door people?
Speaker 3: (01:06)
So at this office we have are specializing in door to door. Um, it’s 95% of our clients or door to door. The other 5% are people that do online sales like Lularoe or they have a product they sell on Amazon, thank direct sales, direct sales. So it’s all the same account.
Speaker 2: (01:24)
That’s awesome. So small business owners that aren’t small business owners but could be small, but you know what I mean? It’s like this weird, it’s like we have such a weird, yeah,
Speaker 3: (01:33)
Speaker 2: (01:34)
anomaly I guess you could say. And it’s funny, like a lot of people that are maybe watching this outside, I, I like, I Find Austin tomorrow and I consult a bunch of roofing contractors and literally most of them were like, how do you pay your people 10 99 is that even the legit like am I getting in trouble? I’m like, no, everyone pays 10 99 and like you are doing it wrong and you’re not. So, but that puts a lot of tax benefit but a lot of tech strategy, it puts a lot of responsibility on the rep in a sense when it comes to taxes. So we’re going to dive into tax planning. How to make sure that you are prepared. You have the five tips to how to become successful when it comes to tax and saving money. Uh, but before we dive into that, I want to,
Speaker 3: (02:18)
no, why accounting. So accounting was kind of what my dad did. He was a controller then he was a CFO. So when he did, you know, he kind of got to a pretty good career path. So growing up seeing him do well and, and uh,
Speaker 2: (02:37)
was he the type of dad that like, he gave you 10 cents and he’s like, all right, we’re going to budget this out. And like stuff like that. We had a paper route, like 12. Yeah.
Speaker 3: (02:47)
You know, and it was because he was telling us we need to make money if we want to spend it. And, and then since I was 16 or older, he taught me a lot about finance and retirement. And so that’s, that was really my biggest, um, you know, passion was, was doing retirement planning. But the way that I choose to do it is it because it doesn’t come with a lot of income to me. So I wanted to choose a profession that would come with a lot of income to me and then do the finance thing later. So, um, accounting is a way to make a lot of money. Um, so that’s what I liked. That’s a lot of them.
Speaker 2: (03:26)
Um, so how long have you been working with JB? Kind of like how long Jamie accounting, how long they’d been around. Tell us they’re kind of background.
Speaker 3: (03:33)
So Jb has been going for 10 years, right around 10 years. Um, it was started by my brother Jake. He founded the company and then started growing it. So after about four years, I got my degree. I started growing my company Baset tax and accounting. And after a certain amount of time, we were both going after door to door guys, cause they need it. There’s a big need in the, in the door to door industry. So Jake called me up, he said, why are we competing? Let’s join up, we’ll go open an office in Provo. And then while we were here, some somebody in Logan ask to, they said they wanted to sell their company to Jake. So he said, I’m going to have to drop this on your lot. And, uh, so since then I’ve been running this office and I became, um, full partner with him, uh, just last or yeah, last year. That’s awesome.
Speaker 2: (04:28)
Yeah. And so you’re speaking, so gas, if you’re listening to this, he’s speaking at door to door con, one of the main stage keynote speakers because we found it’s super important to talk on real estate. You know, we have, uh, Steve Maddox, who’s the owner of edge homes, um, you finance and accounting and we have, you know, different kind of avenues that we find that really are missing in our space. I mean, I think a lot of people that make a lot of money, but then they don’t know what to do with it. They make a lot of money and then they lose it all because the government’s like swoop, you know what I mean? So I think that this is a vital piece and you know, really strategic on how we plan out the, the speakers and the topics. So super excited. So if you’re listening to this or watching this, uh, you can go get a discount to your DDD con ticket right now by using JB accounting and all caps and it’s 25% off. So if you do it right now, you get a discount by, you know, knowing this guy is using this and watching this. So a little secret little hint. Um, so use the code date, JB accounting, and then come, come learn about accounting. So we’re going to dive into kind of an overview of it, but I’m excited to see on the mainstage like dropped him fire. It’s going to be
Speaker 3: (05:38)
fun. I plan on, you know, really giving out my strategy, what I like to do. And uh, yeah, I’ll probably be a little nervous at first, but all good, all kick. But I think you’ll like it.
Speaker 2: (05:51)
I like it. No, and I think it’s funded. A lot of people are like, oh, we’re going to talk about money. I’m like, yeah, if you don’t talk about money,
Speaker 3: (05:58)
you’re doing something wrong. You work that hard to make it. You should do whatever you can to make it work for you. So that’s what I, that’s what I teach my clients to do. That’s what my passion is, just to make as many people as possible, save as much money as possible every year and and, and then create wealth from that with compounding interest. Tax Savings can be humongous. So that’s kind of what I’ll be going over more in depth into. Cool. So let’s dive into these five tips on making sure that we do it right. You know what I mean? So tip number one, what is that? Tip Number one would be to find an accountant if you’re on a 10 99 especially because if you’re on a 10 99 you are now at a disadvantage if you don’t have the right accounting. Because if you’re going to have to pay self employment tax of 15.3% on all of the profit on that 10 99 and if you don’t know how to properly take expenses, that means you’re probably going to pay it on all of the income that you had on that 10 99 or if you were at wt two what’s your desk seven just have that half that.
Speaker 3: (07:08)
Yeah, so, so that’s the big differences. If you have an accountant that they can let you know exactly how to be text. So you don’t want to just do a schedule C tax return, you might need a s corporation or maybe you need to do a partnership. So if you think it’s too expensive to go to an accountant, you’re kind of, it’s kind of a crazy thought actually. It really is because an accountant helping you do things the right way, we’ll save you tens of thousands of dollars if you’re making $200,000 or more. If you’re a under 50 is going to save it thousand or two I mean, it’s crazy how much did it really does save you.
Speaker 2: (07:49)
Yeah, I find that it’s really common for people to be like, I dunno if I want to spend five seven, 8,000 whatever it is, take file my taxes through an account and I’ll just go do it myself on TurboTax. But I think what they’re failing to follow is that principle from the richest man in Babylon where it’s like, are you going to give your money to the brick maker or you’re going to give it to the guy that knows how to deal with your money. Like, you know, you studied how many years to make sure that you’re saving probably a long time. And it’s like when I look at an IRS letter in the mail, like, oh, this is a different language. I don’t want to read it. Rug made. I’m like, let’s just ignore these, you know? Exactly. And that’s what most people do. I mean, we look at all these different schedule, this section, this line item, this, and you’re just like,
Speaker 3: (08:36)
yeah, I don’t know. Oh, I had x amount of gas or I had, I had rent. Can I take it? You know, I had this or I had that. That’s what an accountant is going to do for it is to make sure that every one of those questions are answered and it’s all reported correctly. So you don’t get IRS letters. But if any of clients get an IRS letter, all they do is take a picture of it, text it over to me, and then I send them a text right back. Oh, that’s because you paid your quarterly late or that’s because of this or that. We take care of it. We help with problems with the IRS. No matter what. We’ll help you through an audit. If it’s our fault, we pay for late fees, penalties. If it’s your fault, then we’ll help you out charge forth. But we, yeah.
Speaker 2: (09:19)
some of these people listening to this, you’re probably like, what’s a quarterly, let me tell you a story. This is funny. So I sell 2000 right after high school and then go on. I mentioned, I get a call from my dad like a year a half into my mission. Hey, the IRS is after you. He’s like, you didn’t pay your taxes. And I go, what do you mean taxes? He’s like, you made money, you have to pay taxes. And I was like, oh, I just thought, oh I’ve never done that before. You know what I mean? Literally it was an ordeal trying to from Argentina, pay those taxes, you know what I mean? And try to figure out, and I’m sure it paid way too much, cause it was literally like, here’s your bill, here’s what Jemaine and I paid way more than I needed to add. I just said, here’s an account. Here’s what I mean, here’s my expenses. You know what I mean? Huge. So I think that there’s a principal there in a lot of people need to understand is just find a good guy. So if you need somebody, you got, you know, Zach here, I’m sure that you know, if you’re out of state, do you guys take out of state people?
Speaker 3: (10:25)
Can we to clients and every state of the US, I’m certain states will come with a little bit of a higher annual fee just because there’s a lot more reporting, you know, in New York or depends, depends on what you need, but at the pricing will change a little bit depending on the state. Cool. So let’s go to step number two. Tip number two would be tip number two would be expense tracking. So before you have an accountant doing your court, your bookkeeping, you need to actually track those expenses or else how are you supposed to write them off? Right? So, so one thing I really like to use is, now I’ve gone through many different apps, but the new one is the quickbooks self employed app. Is it better than like a mint or, yeah, I think so. Okay. So quickbooks just does things on another level for bookkeeping.
Speaker 3: (11:15)
So they’re going to allow you to track all your mileage on quickbooks automatically. They’ll allow you to take pictures of receipts and it’ll log it into each little area. So, so yeah, you can start tracking and it’ll tell you all your totals. Just like mint, it’s a lot like men. But um, I think as a few more features including, you know, you can send it to your accountant at the end of the year. So December 31st is over. You just put it in their accountants email, send it over, and then I’d have it or whoever would have it and they could use that for
Speaker 2: (11:49)
until already categorized, you know, a lot of those apps what like about as they kind of make an assumption, they’re like this one tend to be entertainment, you tend to put it in this bucket. So we’ll start putting it in that bucket. It’s more of a quicker, intuitive way to kind of track your expenses, which I like. So if you didn’t track your expenses, let’s say you’re just swipe, swipe, swipe, I got money to the account. What ends up happening kind of the end of the year? What are the repercussions of that?
Speaker 3: (12:17)
So, I mean, if you find a good, I mean, if you’re do your own taxes, then it’s going to be, you’re going to have to guess on everything and you know, you’re not even going to really know. You’ll be really uneasy about what you’re taking. If you take anything. And a lot of times it’s going to mean that you underestimate your expenses because you, you don’t want to, you don’t want to over us to make sense. And that can be fraudulent with the IRS. So you might not get as good introductions as you should have. And then let’s say you do take the expenses and you get a write off or sorry, you get an IRS audit and then they find out you don’t have any backup for it like that. That could be also considered something that you’d get in trouble for. Um, now if you didn’t track it all, it doesn’t mean we’re not going to take the expenses, we’re still going to take them.
Speaker 3: (13:04)
But we want you to go through your book, you know, I mean through your bank statements and really you buckle down and come up with a good number for each one of our categories. You know, you can write off uniform expenses for stuff that you buy for the summer, shoes and pants that you ruin while you’re out there. Um, you can take rent during the summer, you could take utilities during the summer, the per diem for meals you can take. Tell us what that is cause I think a lot of people miss that line. Okay, so pertinent. A lot of people also mistakenly take to the truckers per diem, which is much higher, includes lodging. You cannot take the lodging per diem, a jury, door to door guy. It’s only for the truck driving industry. So let’s say you went to La and you did yourselves. Instead of taking actual expenses for meals, each time you go out to eat for lunch and dinner, you’re going to take the per diem or per day, right? It’s an IRS safeguard. So in La, take $74 a day, which most
Speaker 2: (14:06)
sales guys aren’t spending $70,000 a day. So it ends up being a greater tax savings by understanding what that is versus like, Oh, I’m gonna write off on my meals.
Speaker 3: (14:16)
Yeah. And it’s much bigger. It is limited to 50%. So you’d have to cut that in half. But um, just knowing each one of those little things are what’s going to save you money. Another one where people lose, they lose out on his mileage. They don’t take my day, take gas, they take gas and repairs on their vehicle, which might be 1000 bucks by the empathy year if you’re lucky. Um, and then so they’re missing out on this big huge deduction, which is mileage. So if you drive 20,000 miles during that time, that’s 54 and a half cents per mile. So craze over a $10,000 deduction is huge. And especially we drive a ton. I mean, you know, the area dropping people off, even recruiting meetings. I mean the other people drive up the item and, or they drive wherever, you know exactly what driving the senior accountant to drag into Your Business Bank.
Speaker 3: (15:06)
So you found the, in that quick books App, it somehow does, it, did geo tracking, it’s like this is a business trip. Yes. What it does is it just, when you’re in there, whenever you drug, so it’ll track personal and business and you have to, you know, law distinguish, you’ll swipe left. That’s easy though. When you’re driving it knows what they’re not. And then you’re like, obviously this was a trip, this was, this was that super. That’s cause I, I’ll be honest, I’m always kind of like, yeah, probably like 15,000. I’m just going to get, a lot of people do that too. But at some point you really do need to track. Um, you know, as your income goes up and you have multiple businesses, you’re all did an audit go up a lot. And, uh, you know, mileage is one of the things that are going to, that’s one of the, for sure things that they’re going to check if they’re checking expenses and say, how did you come with that number?
Speaker 3: (15:57)
If you take 15,000 miles though, you’re, you’re not going to get all of it. I mean, most of the time it’s when someone says that at 45 or 55,000 miles or something silly like that, then the IRS looks at that and we want to see some backup before we give them the production. That makes sense. So, so track your expenses. Tip number three. So tip number three is to get the best tax outcome you need to get the best tax outcome possible. If you are a door to door salesman or anyone that is self employed, um, that goes along with finding the accountant. If, if you don’t have the right account, you’re not going to get the best tax outcome. I fix issues for at least a couple of clients a day that have been with the wrong accounting firm because they’ll say, oh, I’ve been with this firm.
Speaker 3: (16:45)
And they said they specialize in this or that. And I’ll look at their stuff and see that they did a schedule C tax return, which means they paid in way more self employment tax then they should have, they should have had a s corporation, which is what we do for anyone profiting over $6,700. So if you profit it over $6,700 on a schedule C on your tax return in the last two years sent me that tax return that will get you may well we’ll backdate some of that and I’ll backdate and s-corporation 40th um, save you a whole bunch of money and get it back with next to zero audit risk. Cause all we’re changing is the entity. We’re not changing expensive. This is where, yeah, we’re just changing the entity. So give us an example. I think a lot of people, maybe this is over your head, so if you’re watching this and you have questions, make sure to comment them right now. But the, like an example of this, I made 70 grand, I see 100 easy man and make a hundred grand. I do a schedule C, I switched it to an escort. I pay myself regional, a
Speaker 2: (17:49)
reasonable wage. How much difference in taxes could I go and backdate that?
Speaker 3: (17:56)
Yeah. So if it’s shown a hundred K in profit on your schedule C, that means you paid in $15,600 in self employment tax. If we were to back an s corporation, you only pay it on $20,000 so you’d have 3,600 bucks or so. So that’s a literally a $12,000 people are just sitting the exam table, $12,000 we do backdates almost every day. So look over your past tax returns or just send them to me. If you’re unsure, just email them over to me and I’ll take a look. If I don’t see anything that I can say down, I’ll let you know. But most of the time I’d say 70% of the time I find something that I can save the money on and add no risk.
Speaker 2: (18:44)
So that’s what’s crazy. So if you’re watching this or listening to this and you ask yourself, wow, I listened to the door or podcasts, I got this advice to say, oh, what did I say? Did I file this wrong because my account doesn’t understand door to door. They don’t understand what we do. Right. That’s probably the main common. My uncle was an accountant. Well, he does the same tax for everybody. So then he just puts you into this cookie cutter approach that he takes in my right and then what happens is now you go back to this and you were to go get $12,000 and like a month, what would that do for you? You know what I mean? That’s what I’m saying like, and then we did that two years. That’s $20,000 that you guys gave to the government. They’re sitting there with your money and you didn’t need to pay them that. And I think, I think that that’s the difference between people that are listening and it will take this to heart. You guys will do something about that. Because I had that happen. I literally had a $15,000 check when I started paying attention and I’m like, oh thanks accountant. Thank you. I would’ve never done that
Speaker 3: (19:47)
or even look crazy. So it’s very worth it. We’re saying it’s very worth it. Sometimes it can be savings in the, you know, it’s just crazy how much you can say it’s 20, 30, 40,000 on some people’s tax returns because of a couple things that they missed. It’s, it’s uh, it’s because we specialize. So if you’re, if you’re self employed, really just send it over all, I will find stuff or I won’t. But it’s worth a look and a lot of money that you can say.
Speaker 2: (20:17)
And so then let’s talk a little bit more on that strategy. Cause this tip, it’s more how did the, make sure that you strategize the right way. And I think this is where a lot of people go wrong and I almost did this, but luckily I had good advice. I like real estate. Yeah. So I’m going to go and get a fourplex and a lot of us that make a lot of money, we’re like, great, I want to make x amount so I can go invest in a real estate. But I obviously want to avoid as much as I can pay the government. So if my strategy is like I’m going to buy a or from Iowa state next year and I show a $30,000 of my own reasonable salary, I go to mortgage, dude,
Speaker 3: (20:56)
what happens? It’s not going to give you the loan. So you’re, you need to make sure that you let your accountant know, um, exactly what it is that your goals are. So when we do our annual tax planning meeting with clients, it’ll be 30 minutes or an hour had however long it takes. But one of the first things I want to know is, is this a rental guy or is this a everything else? So I’ll teach everyone to try and get into rentals at some point. But I do have mine specific formula of the vast, this way to basically grow your wealth in conjunction with tax planning. Into what I’ll go over with indoor to outdoor con, but I go over that with each client. I go over and over and over, you know, and let them know, do this and this order. You’ll build fastest and, and yet you just need to make sure that you know that your accountant knows what it is that you want to do or else I might expense off every single thing and tell you to do, you know this retirement planning in that retirement plan and all of a sudden you have no income left on your tax return.
Speaker 2: (21:59)
Exactly. Bank’s not going to like it. And that’s what a lot of people do. Like, I mean I put myself in a bind. I did a overfunded an insurance for one. I mean I was doing it like every like tax strategy there was because they made such good income and then I was like, Oh free. But now I don’t get to see that, but anytime 60 and I’m like darn it, you know, and I’d be grateful. At the same time there’s like aspects of, it’s like what’s the strategy? What’s your short term? Your longterm, your middle range game. And I think a lot of times having your financial planner and slash accountant slash insurance slash real estate advisors, all of them all on the same page. Because if one of them is like pushing them a product than your throat, he’s like, you need to get x insurance. Like that. What happened to me? I’m like, yeah, you know what I mean? Now I’m stuck. Like it’s just kinda like, eh, either I lose it all or it kind of just let it run with it and regret it. You know what I mean? So I think that strategizing with people you trust would be
Speaker 3: (23:00)
a super important piece of that as well. We try to do it all in conjunction. We’ve got the financial company, we’ve got the rental property company, deluxe is the rental company, and then we’ve got, um, fortunate financial so we can help you basically get all your ducks in a row in one place instead of, you know, Oh, let me talk to my financial guy, let me talk to the guy that’s managing my properties and get my, um, some of my bookkeeping. You know, it’s all in house, you know, it can all be in one place.
Speaker 2: (23:33)
Okay. So tip number four, before you come to that, hold on. I gotta fix it. You know,
Speaker 3: (23:39)
like 30 minutes. Okay, quick pause, intermission, go by JV Academy. Um, it’s this all liking it, et cetera. Um, so timber for good tip number four is deadlines. You want to make sure that you’re hitting all your deadlines. Um, a lot of people will set up an s corporation with the company and started getting quarterly fees from that accounting company. Um, and then they’ll decide why I don’t need to do the, I don’t need them to do this. It’s easy. I’m just going to do my stuff on my own. Um, it almost always turns out bad because you can’t just not do guilt leave reports. So people think, oh, I don’t have to do those. You actually do. Even if you don’t owe tax, you have to file each quarter. They get four of those letters in my mail
Speaker 2: (24:35)
right now, sitting there and a penalty letters, you owe x amount of taxes. I was like, I didn’t even make any money with that business. It feel Kennel to Sunday and send them over to me second. I can do my best to get those abated. Okay. So you get a one time abatement with each company that you have on your biggest late fee or one of mine’s like two grand. I’m like the business says you’re made of, I can fix that problem. Yeah. And then I can fix him
Speaker 3: (25:02)
that as well. Possibly. But after that it’s, it’s 50, 57 ticket.
Speaker 2: (25:08)
Okay. Tip the business made no money. I still need to file like stinking letters. If you’re set up,
Speaker 3: (25:15)
there’s an LLC s Corp, then you’ve got to file the quarterly. They want to know that you made no money. Yeah. They need to know that way that they’re happy with you not paying any taxes. Right. If you don’t pay him in, you get $200 fee per month. It’s a big man, like two grand right now guys. It happens all the time. And after your one time abatement, you’re Sol. So, um, other things you don’t want to be laid on or let. So if you get a letter in the mail, you do not want to ignore it that are very important. They will put a levy on your bank account. They will seize your funds. Um, I’ve had many clients that it’s happened to cause they just didn’t pay, never sent, never sent him any letter to me or never sent in a payment to the IRS. So after about a year, the IRS will just take it from you. You’ve got to make your payment, um, as soon as possible, but at least within a year of having it be late or they’re going to just take your property from you.
Speaker 2: (26:14)
Oh, I thought of the accounting joke. Oh, so think of the IRS. They always get, there’s the IRS came in and they will get theirs. Yeah,
Speaker 3: (26:33)
we’ll good. There’s no matter what. Yeah. What did they say? There’s three certainties. Yeah. Or two certainties stuff and taxes.
Speaker 2: (26:43)
Um, so you get a letter. A lot of times this is Mumbo jumbo to us. Is there ways or resources? Like I call the IRS and I’m like, what is this? Five hours later, oh, we got a person on the phone. Like is there other ways to go about like knowing
Speaker 3: (26:59)
what the heck these are mothers mean? Yeah, I mean you can do it the way I do, which is just I googled it first and found out, and you can actually put in the, it’ll say notice and it’ll give you like a CP, 1000 or whatever. You can type into Google. She’d be 1000 and it’s going to pull up. Oh, this is for being late on a quarterly and normally it does state it in the actual letter and to read it. Yeah, the subject matter to God, you have to read it and it has some complex wording. So it’ll say things like nine 49 41 and you might not know what that means and always throws me off. I’m like, man, he’s number tied. Exactly. That’s why you do what you do. And I do what I do.
Speaker 2: (27:40)
So the other deadlines, I mean I think that there’s important deadlines when it comes to, I want to save money on taxes. Like some advice that I’ve always gotten was prepay your state tax. It’s gotta be done by the end of the year.
Speaker 3: (27:51)
Uh, you know, if somebody wants to say my own like for a ride off of 401k, when does that, you know, so definitely on the four o one k um, you know, you can prepay your state tax to save on tax this year or do, you can just pay it on time and save on tax next year and if your, if your income is going up then you, you know, it’s going to be more valuable to you in the following year. If your income’s going down then yeah, you want to prepay. So, so that’s definitely good advice. That’s what you’re doing. That tax planning meeting is figuring out what things need to be done, what direction you’re heading. Because yeah, sometimes the summer salesman might make 200 k this year, but then the next year they’re not doing sales. I’m going to take a year off, so we might want to make sure everything’s included in this year and as little as possible next year. That makes rise. So, but the retirement accounts, you have to make sure that they’re set up by the end of the year. If it’s a solo forum, Kay. Um, that has to be by December 31st. And if it’s a IRA, it’s by April 15th. That needs to be set up and funded. But you can actually fund the solo all the way in until the extension deadline if you extended your taxes to, um, October 15th or September 15. So talk to me a little bit side now. I’m going around his tangent. Have you guys don’t mind solar forum or,
Speaker 2: (29:11)
so our, uh, our uh, Ira Roth Ira, your Ira, whatever’s, you know, like a lot of people talk all that. What’s like, at what point can I not do it raw versus,
Speaker 3: (29:24)
so I believe the phase out with your single starts at like 115,000. You can’t, after that, you’re going to phase out how much you can do into a Roth Ira. Um, and then tell him what to rewire Roth Ira. It’d be awesome, brother IRA’s. Awesome. Um, because it’s basically going to grow your, did you put 5,500 in? It’s going to grow all the way until you retire. So if you’re 20 and you put 5,500 and you might have 600,000 when you retire at 65 when you have to pull money out and if it’s a raw, you don’t have to pay any tax on that money. Yeah. Not going in no. Or how well going in Fintech but not out. But yeah, if you’re an 18 year old and you’re going to school and you make 10 grand and doing some of cells, that 5,500 is going to grow to be that and you’re not going to be taxed on it.
Speaker 3: (30:17)
And you’re also not going to pay tax on it this year because the standard deduction is $12,000, so you’re automatically at a loss for taxes. That’s cool. Now you got no tax and no text. That’s beautiful. Okay. So let’s move on to any other thing as far as deadlines or advice to make sure that they’re hitting. Just make sure that you, you have a good accountant that helps you be aware of the deadlines. If you’re unsure of of maybe what they are and you do have an accountant, ask him for some help or switch over to me because they aren’t doing a good job. Um, and because we send out a thing, we send out a calendar to you when we first set you up with all the dates are pricing and we asked you to put it in your calendar so you know when something’s happening.
Speaker 3: (31:03)
But on top of that, we’re going to send out reminders before each things to. So in a couple of days we send out the third quarter report text. It says, make sure you check her email. Quarterlies. Third is do if you don’t have it in the mail postmark by the 31st it’s late, there’s a late payment penalty, a late filing penalty and interest. Yeah. And just being on top of it and think how much money people save on that. It’s huge. If every time I had to spend an extra 25 bucks for a late fee and an extra x for interest and that all adds up. Yeah. So, so you just want to make sure you’re really aware of those dates and it’s not just filing the report, paying the taxes at that time. Oh, this is another thing. A lot of people mess this up. So they think that when they extend their federal and state taxes, that means they don’t have to pay their taxes until they file in by September 15th or October 15th.
Speaker 3: (32:02)
Well that’s not the case. If you extend your taxes, it just extends the time to file. So you won’t get delayed violin penalty, but your taxes were due on April 15th so you have to pay an estimated amount. So your accountant should tell you, hey, your estimated amount is this amount and you can pay it. Don’t pay that. Do occur interest after that. Yeah, you accrue interest and then you get delayed payment penalty as well. The late payment penalty is going to be the worst part, um, because the interest is very nominal. Um, some people really hate getting these from the IRS. Some people are like me and they’ve purposely don’t pretty paid their taxes and they don’t estimate and payer on April 13, I will wait and pay the late fees and penalties because I would rather have my money invested in a brokerage account making, you know, seven, 8% safe, like a real safe account. I make 78% and then I pay in the fees that you calls to be maybe 2%.
Speaker 2: (33:05)
Interesting. Yeah. But you gotta be smart and have it as part of your plan. Has a lot of people don’t have that money sitting in a seven and 8%. Yeah. It’s like you would have just been better off paying. Yeah,
Speaker 3: (33:14)
that’s very true. That’s why you want somebody that’s got the whole circle going on. Exactly. Yeah. Okay. So let’s move on to tip number five. Tip number five. Um, review your accountant’s work. So I know that sounds counterintuitive. You’re like, well, why did I hire him if I have to review it? What I mean by that is get a second opinion. Um, if you are unsure how well they’re doing, um, they might be able to say anymore, send it over. I’ll let you know what I would have got with the exact same numbers. I’ll say, you know, Oh, we could have done an s corp or we could have done this or we could have done that. Um, you didn’t take this credit, you didn’t Max this out. Um, and then I’ll, I’ll send you back basically a quote of what it would be to, to help you do it and how much it would say to you.
Speaker 3: (34:00)
But the main reason why is to make sure they’re not doing anything illegal on your part because there, especially in door to door, a lot of people are setting up shop saying, oh, I specialize in door to door. I’ll do it for this price. And someone making 150 goes over there and they’re like, oh, I’m getting a refund to $1,000. This is insane. After the account gets done here, the best in the world. Well if you took a look at that tax return, even if you don’t know tax as well, you could look at it and see, oh they wrote off a $60,000 truck and they took 55,000 miles on a different vehicle. But all I had was the one Honda accord. Like what truck is this? But guess what, you signed the tax return, not door your account science and too, but when you sign you are agreeing to everything on the return. So you’ve got to make sure it’s being done right. Because in that case that would be a case of fraud, tax fraud. And unless you could prove it, it’s on you. You signed it saying it was true. So true. Yeah.
Speaker 2: (35:03)
Yeah. I actually ran into that. I haven’t been audited the audit me for watching that no, but for real though, like it was just, I didn’t have second eyes and then when I switched accountants, I, I ended up having second eyes and I go, this is all wrong. And they’re like, if you get audited the last four years, you’re screwed. Yeah. And I was like, oh, cause I have aggressive, I like to kind of like, come on, let’s figure out how to say more. Exactly. But I think that, you know, my uncle actually gave an interesting advice. He runs a big law firm here and he’s like, the taxes are for, he’s like, we benefit from tax. There’s no roads. We have, you know, uh, school systems. We have firemen, we have policemen. And he’s like, so just pay it. Like that’s your contribution to the society. Like the fact that you make great money, good job. You got to in taxes a little bit more. So I think a lot of times we, our goal is to say like, how do we just avoid everything? My uncle had a good shift for me and it was just like, it’s like, did I put a ton of taxes? Not Aggressive. I’m not so conservative where I don’t take any right off, but at the same time there’s really interesting and he’s just like, that’s why we have taxes.
Speaker 3: (36:14)
Exactly. Yeah. There’s a reason for it. It’s not bad to pay him in. Um, yeah, of course we’re going to try and do whatever we can to lower than, but there’s a certain point when you just want to stop and that’s when you get to the point of you’re maxing out solo one K Ira. You’re doing HSA accounts, five 29 plans. You did a couple rental properties and then you’ve taken all of your actual expenses. That’s when he stopped you stopped them and you’re good. You might even take a little less than that if you’re trying to get more, more rental properties the next year because we want to make that Agi just if gross income look good for the loan officers. Otherwise they’re not giving you as many loans as you would want in that year. 100%. Yeah.
Speaker 2: (37:00)
Okay. So to kind of wrap all this up, I’ve got a last couple questions. One, what’s The craziest tax story you’ve seen? Has there been any like wild like audit or like just had one really crazy.
Speaker 3: (37:15)
Um, but if I told him he was just here two days can you were saying, um, he would know. But let me tell you one other. Cool. And so one of my clients who does not care if I, if I mentioned this story, he’s a big dog over at, um, at vantage. His name’s David Turner. Um, he, he helped us grow in the early stages after what we did for him because his dad works for a big four tax from, I believe it was Deloitte. And, uh, I told him, look, I think I can save you money on your taxes. And he’s like, man, my dad works for Deloitte. And I was like, please man, just let me take a look. I promise. I mean, I was real hungry and I said, you know, I don’t know what I promised and maybe I’ll give you this.
Speaker 3: (38:01)
I’ve just, just let me take a look at it. And he showed me it because it was as I expected. I thought maybe his dad was so busy, you just did it quick, schedule C and you know, here, pay your taxes. And, and uh, that was the case because he needed an LLC s corp for taxes. And I said, then, correct me if I’m wrong, David, if you watch this, but it was 27,000 bucks that he saved and he tells everybody so I can tell people, but that was the coolest story for us and one that just helped us really grow
Speaker 2: (38:34)
as my own. That
Speaker 3: (38:36)
is a big forward, you know what I mean? Yeah. That’s cool. I think that that happens more often than we think. And that’s what we talked about. Principle number one. Um, so if you were to talk financial planning more so than like, like there’s two ways to make money, avoid paying the government and save or make more revenue. So any advice when it comes to the revenue generation aspect? Like obviously you’re doing it money a lot, probably pointing people in the right directions when it comes to investments and he like big wins or directions you’d, or advice you’d give on that. Yeah. So I want you to put all of your money into apple. Okay. Um, no. So, so you know, the main main advice would be that you do have, um, you have a good financial advisor that’s going to be a big deal.
Speaker 3: (39:25)
Um, and then because you want to be with the right actual firms as well, because certain firms will make you have a minimum amount before you can invest in the type of investments that you should be in, which are, you should be an exchange traded funds, ets, which have hundreds or thousands of stocks inside of them. So when you buy a piece of this ETF, you’re getting a piece of all of those companies inside of it. So you’re diversifying your risk. That’s going to be your main thing that you want to do. My number one advice would be to diversify your risk. That’s what a good financial advisor will do. Number two would be to lower your fees. So on mutual funds, there’s front loaded fees, the back load at the fees, there’s annual loads. So that means you’re going to have fees at the beginning when you first put the money in at the very end and you’re and, and every year.
Speaker 3: (40:24)
So it can end up cutting their 12% return down to like seven or eight each way on retirement, which is enormous. That means your money will double like you know, three times less than it would have if you got to keep 11% of close to how do you avoid the fees. So you got to make sure you’re with the right firm. So like with fortress financial, the firm that, um, I’m part owner of with German monk and my brother Jake Bassett, we don’t do any front or back loaded mutual funds. Those mutual funds are set up to get kickbacks to your financial advisor and that company. So that’s what, it’s a predatory thing, just like universal life insurances. So we don’t sell universal life insurance unless somebody is adamant that that is what they want and we will get them the best price because we can go with any company because we’re independent so we don’t have to sell, you know, life insurance through state farm or, or this place or that place. We can pick and choose from wherever we want. Um, so that’s how, that’s how we get your fees lower. We make sure we were in ETFs. And even if you have $1,000 that you put it, that’s interesting. They don’t require you to have 250,000. And the reason why I said I didn’t start a financial firm first was because there’s just very little money for me with the way that I do for people.
Speaker 2: (41:48)
Yeah. Cause you don’t want to sit there and sell him the highest commission thing because it doesn’t necessarily, and that’s what you’re fine. And this is great advice because it’s so enticing to talk to a financial guru that says buy this product. You know, this mutual fund or this life insurance. That’s because they make the most money. I had been a victim of that and it’s like, you know, and every time I’m like, well I’m going to get into real estate. They’re like, no, no, no, no, no. That’s ducks. That’s not smart. I’m like, what do you mean it’s not smart? You just don’t want you on my money in your product. You don’t make money when I go real estate. You know what I mean? And you’re like, do you have my best interest or are you looking out for yours? And I think that that’s like a, an important principle that a lot of people forget that it’s like you’re talking to salespeople, banks, they want to sell you money. The investors, they want to save money. You know what I mean?
Speaker 3: (42:37)
Yeah. And I hope that my clients, my current clients, um, no, that basically I think they know that hey, you really is doing things the right way. Because I was preaching the exact same thing before we started the financial from the exact same step of things I do to grow wealth. It’s the exact same now, but I’m just going to save those people cause they’d go out and they’d get, I’d say, you have to do this, this and this. And then they’d go to Northwestern mutual and get sold to universal life insurance policy that’s gonna really, really underperformed like crazy compared to a IRA would on average. Right. So, so I just got sick of it. I’m like, this is getting, you know, it’s really crazy. It’s everyone was doing. And then they weren’t, they weren’t putting money in the right accounts or they were all going into mutual funds. And so I just said, okay, it’s time. Let’s get it going. And I found Jaron monk, one of the most morally responsible people I’ve ever met, and somebody that invests right alongside with you in those accounts as monies in the exact same spot. And so it was my all in the exact same funds. So, so you’re kind of getting that? Um, yeah, we’re selling me what we’re doing ourselves as super cool. Cool.
Speaker 2: (43:56)
Let’s wrap up. I always ask like did, and honestly, I appreciate your time. Super excited. Obviously see at Dordt Orrcon and this is, this has been insightful. So share this. If you know anybody you know, or like this, if you’re like, hey, my rep needs to hear this, my manager needs to hear this. If you know people that are like, wait a minute, they’re idiots with money and they’ve never taught me this, or we’ve never had this conversation, whether it’s your dad from Deloitte or I don’t care who it is, they need that. Like, people need to be educated on this. Um, so yeah. So make sure to share those gifts. Zach. Some love.
Speaker 3: (44:32)
But yeah. Any other advice for door guys that he’d want to give or just reach out? You know, it’s free consultations for it. If you go to your dad or if you go to your mom, do you really want to be, do you want her parents to handle your stuff your whole life? Um, I think it’s good to step out on your own to do financial and accounting thing. It’s a big deal. Um, and you know what? They probably don’t specialize in door to door, even if they do your taxes, so they work at h and r block or whatever it might be. There’s a huge difference between specializing and doing taxes. Hundred percent in cook. But thanks so much for your time and I think it’s awesome people